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"Foreign market participants' views on the yen hinge on whether the BOJ will ease further or not, and such comments from an official naturally spark selling of the yen."
- Mizuho Bank (based on Reuters)
Pair's Outlook
The Greenback's attempts to pierce the resistance cluster around 121.00 were in vain, as rather poor fundamental data limited the USD/JPY currency pair's upside potential. Even though the cluster weakened today, with the 20-day SMA shifted further to the downside, it is still likely to prevent the pair from climbing above the 200-day SMA today. The fundamental drivers are also expected to disappoint today, weighing on the US Dollar even more, whereas technical studies retain their bearish signals. Nonetheless, a slight surge to the psychological level of 121.00 is our base case scenario.
Traders' Sentiment
Bulls gained some numbers, as 65% of traders hold long positions today. The portion of purchase orders declined from 48 to 45%.
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